It's an investment holding focused on alternative investments, mainly PE.
It means that it goes extremely well when the market is doing well, like now, but very badly during bear markets. You can see the same pattern on many bigger brothers of same sector like Blackstone $BX , KKR $KKR , Brookfield $BN, or Apollo $APO.
The reasons are mainly 2:
1. It's difficult to have a proper valuation on private equity, so they compare them with other peers, and when the market is high they are priced very high too.
2. Part of the fees are performance based, so when then asset price increase much, they make lot of money.
Buy it if you accept higher-than-average volatility and you are bullish about broader European markets in the next future.
You can text me to have more insights if you want: info@giaromeo.com
š
It means that it goes extremely well when the market is doing well, like now, but very badly during bear markets. You can see the same pattern on many bigger brothers of same sector like Blackstone $BX , KKR $KKR , Brookfield $BN, or Apollo $APO.
The reasons are mainly 2:
1. It's difficult to have a proper valuation on private equity, so they compare them with other peers, and when the market is high they are priced very high too.
2. Part of the fees are performance based, so when then asset price increase much, they make lot of money.
Buy it if you accept higher-than-average volatility and you are bullish about broader European markets in the next future.
You can text me to have more insights if you want: info@giaromeo.com
š
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@Romolo Thank you. A very interesting short assessment.
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